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Foreign firms sanguine on Chinese market

Economic vitality, growing optimized biz climate driving upbeat sentiment

By ZHONG NAN | China Daily | Updated: 2025-03-06 09:27
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Employees work on the production line of a foreign-funded electronics company in Rongcheng, Shandong province. LI XINJUN/FOR CHINA DAILY

Foreign companies remain steadfast in expanding their presence in the Chinese market, driven by the country's economic vitality and an increasingly optimized business environment that bolsters their confidence, business executives said on Wednesday.

Despite rising geopolitical tensions and the surge of protectionism, they noted that China's efficient industrial and supply chains, coupled with its evolving innovation ecosystem, will provide a solid foundation for multinational corporations to invest and grow in the years ahead.

China will better open internet-related, cultural and other sectors in a well-regulated way and expand trials to open sectors such as telecommunications, medical services and education, according to a government work report submitted on Wednesday to the national legislature for deliberation.

Premier Li Qiang, who delivered the report at the opening meeting of the third session of the 14th National People's Congress in Beijing, pledged that the country will encourage foreign investors to increase their reinvestment in China and support them in collaborating with upstream and downstream enterprises in industrial chains.

China will ensure national treatment for foreign-funded enterprises in fields such as access to production factors, license applications, standards setting and government procurement, said Li.

Jens Eskelund, president of the European Union Chamber of Commerce in China, said the chamber's members believe that full implementation of recent measures aimed at optimizing the business environment is still the best way to boost confidence in the Chinese market.

The two sessions this year therefore represent an opportunity for China's leadership to communicate clear expectations to local authorities in the form of implementation timelines for the 2025 Action Plan for Stabilizing Foreign Investment, said Eskelund.

China issued the action plan in February, aiming to stabilize foreign investment this year. As part of the plan, the country will support pilot regions in implementing opening-up policies related to areas such as telecommunications, biotechnology and foreign-owned hospitals.

Sanguine on the Chinese market, Gong Anming, executive vice-president of Elekta, a Swedish medical equipment producer, said China's transforming business environment has reinforced foreign companies' confidence in making long-term investments in China.

With research and manufacturing facilities in several Chinese cities, including Beijing and Shanghai, Gong — who is also Elekta's president for China unit — said his company will strengthen support for localized production, innovation and the training of radiotherapy professionals to build a robust radiotherapy ecosystem.

"While creating tailored solutions for Chinese patients and hospitals, we are also proactively sharing innovations originating from China globally," he added.

Striving to gain a bigger foothold in China, German industrial and consumer goods group Henkel announced on Tuesday that it has completed its acquisition of Suzhou Boke Biotechnology Co Ltd, a manufacturer of personal care products based in Suzhou, Jiangsu province.

Frank Labahn, head of production operations and supply chain at Henkel Consumer Brands Asia, said the acquisition is a strategic move to reinforce the company's commitment to China and further strengthen its supply chain capabilities.

"China is a stronghold in our manufacturing footprint, and this investment enables us to enhance local production," said Labahn.

This move will drive the continued growth of Henkel's consumer goods business in China, positioning the group to respond to shifting market demand with greater agility and efficiency, he added.

China attracted 97.59 billion yuan ($13.44 billion) in foreign direct investment in January, marking a 27.5 percent increase from the previous month, said the Ministry of Commerce.

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